EXHIBIT B
SUPPLEMENT DATED JULY 31, 1997 TO
PROSPECTUS DATED MAY 1, 1997 FOR
THE ALLEGIANCE VARIABLE ANNUITY
ISSUED BY
THE ALEXANDER HAMILTON VARIABLE ANNUITY SEPARATE ACCOUNT
AND
ALEXANDER HAMILTON LIFE INSURANCE COMPANY OF AMERICA
This supplement updates certain information contained in the prospectus
and, to the extent inconsistent, it supersedes it. You should attach this
supplement to the prospectus and retain it with the prospectus for future
reference. You may obtain an additional copy of the prospectus, free of
charge, by writing or calling Alexander Hamilton Life Insurance Company
("Alexander Hamilton") at the address or telephone number set out below.
The purpose of this supplement is to notify you of a proposal to
substitute (1) shares of the Oppenheimer Bond Fund for shares of the
Investment Grade Bond Fund of Alexander Hamilton Variable Insurance Trust (the
"Trust"); (2) shares of the Oppenheimer Bond Fund for shares of the High Yield
Bond Fund of the Trust; (3) shares of the Balanced Portfolio of Chubb America
Fund, Inc. ("CAF") for shares of the Balanced Fund of the Trust; (4) shares of
the Growth and Income Portfolio of CAF for shares of the Growth & Income Fund
of the Trust; (5) shares of the Capital Growth Portfolio of CAF for shares of
the Growth Fund of the Trust; (6) shares of the Emerging Growth Portfolio of
CAF for shares of the Emerging Growth Fund of the Trust; (7) shares of the
World Growth Stock Portfolio of CAF for shares of the International Equity
Fund of the Trust; and (8) shares of the Money Market Portfolio of CAF for
shares of the Federated Prime Money Fund II (together, the "Substitutions").
On July 22, 1997, Alexander Hamilton filed an application with the
Securities and Exchange Commission (the "Commission") requesting an order
approving the Substitutions. Upon obtaining the order from the Commission
approving the Substitutions, and subject to any prior approval by applicable
insurance authorities, Alexander Hamilton and the Alexander Hamilton Variable
Annuity Separate Account propose to effect the Substitutions as soon as is
practicable.
Alexander Hamilton has proposed the Substitutions to provide appropriate
solutions to the insufficient size of the Trust which makes it difficult to
achieve consistent investment performance and to reduce operating expenses.
Owners will receive a Notice within five (5) days after the
Substitutions that the Substitutions have taken place. For a period of
thirty-one (31) days from the mailing of the Notice, Owners may transfer all
assets, as substituted, to any other available sub-account without limitation
or charge and without any such transfer counting as one of the limited number
of transfers permitted in a contract year free of charge. After such thirty-
one (31) day period, any transfers will be subject to the restrictions
described in the prospectus.
Alexander Hamilton Life Insurance Company
100 North Greene Street
Greensboro, North Carolina 27401
800-289-1776
